Learn what closing costs really include, how to estimate them, whether they’re rolled into a mortgage, and how to reduce surprise fees when buying or selling a home. Closing costs can feel like a hidden expense, but understanding them up front keeps more money in your pocket.
What Are Closing Costs?
Closing costs are the fees and charges due at settlement to transfer ownership of a home. They cover things like title searches, transfer taxes, lender fees, insurance, attorney costs, and more. In Pennsylvania, closing costs usually run 2%–6% of the sale price, depending on whether you’re buying or selling.
Also budget for indirect costs like home repairs needed to pass inspection, staging to attract buyers, or deep cleaning. While not technically closing costs, these expenses can add up fast.
Who Pays Closing Costs in PA?
In most PA home sales, both buyers and sellers pay separate costs:
- Sellers cover real estate commissions (5%–6% of the sale price), transfer tax, title fees, and sometimes repairs or staging.
- Buyers pay lender fees, title insurance, inspections, and taxes.
Many of these fees are negotiable. Sellers may agree to cover a portion of the buyer’s costs to help the deal close.
Can Closing Costs Be Rolled Into a Mortgage?
Buyers can sometimes roll certain closing costs — like lender fees or mortgage insurance — into their mortgage, but this increases the loan amount and total interest paid over time.
Sellers can’t roll their closing costs into a mortgage, but they can adjust the sale price or offer concessions to help cover them.
How To Calculate Closing Costs
A good estimate is 2%–6% of your home’s price. For a $300,000 home, that’s about $6,000–$18,000 in total costs.
What Buyers Typically Pay:
- Loan origination fees
- Title insurance
- Credit report fees
- Recording fees
- Appraisal and inspection costs
- Mortgage points (if buying down your rate)
- Transfer tax (often split)
- Prorated property taxes
- Homeowners insurance
What Sellers Typically Pay:
- Real estate agent commissions
- Transfer tax (often split)
- Prorated property taxes
- HOA fees or transfer fees
- Seller concessions
- Utilities up until closing
- Title company or attorney fees
- Pre-listing repairs & staging
Hidden Fees To Watch For:
- Last-minute buyer repair requests
- Unpaid liens or judgments
- Mortgage payoff penalties
Use an online closing cost calculator or ask your agent for a detailed breakdown.
Closing Costs With a Cash Purchase
Paying or selling for cash changes things:
- Buyers skip loan origination fees, mortgage points, and some inspections.
- Sellers often avoid costly repairs or staging.
- Big benefit: Many cash buyers cover all closing costs for the seller, so you keep more profit and close faster.
You may still pay transfer taxes or recording fees, but total costs are lower.
Hidden & Unexpected Closing Fees
Closing costs can surprise you if you’re not prepared. Common hidden or overlooked expenses include:
- HOA transfer fees
- Unpaid liens or judgments
- Pre-payment penalties for paying off your mortgage early
- Holding costs if the home sits vacant
- Moving costs
How To Reduce Closing Costs
✅ Shop around for title and escrow services
✅ Compare lender fees and negotiate loan terms
✅ Ask for concessions, sellers can agree to pay some buyer costs
✅ Choose a low-commission agent or FSBO
✅ Selling to a cash buyer can eliminate commissions, repairs, and extra fees
Should You Sell to a Cash Buyer to Save on Closing Costs?
Selling to a reputable cash buyer can help you:
- Avoid agent commissions
- Skip staging, repairs, and showings
- Close on your timeline, often in days
- Save thousands since many cash buyers cover all closing costs
Learn more about how we buy houses and get a no-obligation cash offer today.
Closing Costs FAQ
How long does it take to close in PA?
30–60 days with financing, or 7–14 days with a cash buyer.
Can you avoid closing costs completely?
Not entirely, but you can reduce them with smart negotiation or by selling to a cash buyer.
Are closing costs tax deductible?
Some parts like mortgage interest and property taxes may be deductible. Always check with a tax pro or you can you can also review the IRS guidelines for details.
Final Takeaway
Understanding closing costs helps you plan better and keep more money in your pocket. If you’d rather skip the surprises, consider selling for cash and closing on your timeline. Learn more about how we help Pennsylvania homeowners sell fast